The House of Representatives has mandated its committees to launch a comprehensive investigation into alleged "flagrant violations" of key oil and gas regulations by major companies operating in Imo State, including failures to prioritize local jobs, award contracts to indigenous firms, and establish Host Community Development Trusts.
The resolution, passed unanimously during Thursday's plenary following a motion sponsored by the lawmaker representing Ohaji/Egbema in Imo State, targets non-compliance with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, the Petroleum Industry Act (PIA) 2021, and the Taxes and Levies Act.
It comes amid mounting grievances from oil-producing communities in Ohaji/Egbema, Oguta, and other local government areas (LGAs), where residents accuse international oil companies (IOCs) and indigenous players of economic sabotage through exclusionary practices.
Leading the debate, the sponsor highlighted how the NOGICD Act aims to boost Nigerian participation in the industry, while the PIA provides frameworks for environmental protection and equitable benefit-sharing.
Yet, he charged that firms like Seplat Energy Plc (operating OML 53), Niger Delta Petroleum Resources (NDPR, OML 54), Sterling Oil Exploration & Energy Production Co. Ltd. (SEEPCO), WalterSmith Petroman Oil Limited (OML 16), Associate Oil & Gas Limited/Dansaki Petroleum Limited (Umuseti/Igwe marginal field), Chorus Energy Limited (formerly Shell Portfolio), TotalEnergies/NNPC Joint Venture, and Nigerian National Petroleum Corporation (NNPC) Limited have flouted these laws.
Specific breaches include: refusing to set up functional operational offices in Imo as required by Section 3(j) of the NOGICD Act, denying the state jobs and revenue; sidelining qualified indigenes in hiring, violating Sections 11, 28, and 35; blocking contracts to local companies; obstructing Imo State Internal Revenue Service (IIRS) officials from tax assessments; and ignoring Chapter 3 of the PIA on Host Community Development Trusts, leaving communities without promised infrastructure or benefits.
"These persistent outcries and allegations from host communities and the Imo State Government point to a systematic failure that has caused immense frustration, widespread agitations, and a threat of social unrest," the motion warned, forecasting "violent protests, threats to national security, destruction of oil and gas infrastructure, disruptions to production, harm to the national economy, and a breakdown of law and order" if unaddressed.
The sponsor emphasized that such neglect undermines the PIA's goal of fostering peaceful coexistence and equitable growth in the Niger Delta.
The House directed its relevant committees—likely including those on Petroleum Resources (Upstream and Downstream), Local Content, and Finance to probe compliance levels, with a focus on indigenous employment quotas, contract awards, office establishments, trust implementations, and tax access.
It also issued an urgent call for the implicated firms to rectify violations immediately, grant IIRS unfettered access, and engage in "genuine dialogue" with community leaders to avert escalation.
Imo State Governor Hope Uzodimma welcomed the move in a statement, describing it as a "vital intervention" to enforce federal laws and protect the state's N2 trillion-plus oil revenues, which fund over 60% of its budget.
"This probe will ensure justice for our people, who bear the environmental scars of extraction without reaping its fruits," he said.
Civil society groups, including the Host Communities Network, echoed the sentiment, with coordinator Bestman Wellington hailing the resolution as a "wake-up call" but urging timelines to prevent delays.
"Imo hosts 10% of Nigeria's oil yet our youths roam jobless while foreign firms profit unchecked," Wellington told reporters.The investigation unfolds against a backdrop of Niger Delta tensions, where similar PIA disputes have sparked protests and pipeline vandalism, costing the economy billions in lost output.
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